Belvoir Lettings PLC (LON:BLV) said it will not proceed with a merger offer for The Property Franchise Group PLC (LON:TPFG).
The company had announced a possible bid on Tuesday and a number of common institutional shareholders had publicly stated their support for talks.
READ: Funds want The Property Franchise Group to talk to Belvoir Lettings over possible merger
Fund managers Amati Global Investors, Livingbridge and Hargreave Hale, which speak for owners of 12.31% of TPFG, said they supported in principle the two firms engaging in discussions around the possible merger offer.
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But TPFG directors and their connected persons, which own 49.3% stake in the group, have turned down the opportunity to engage in discussions.
Belvoir said it was “disappointed” the board of TPFG has declined to enter into talks, especially considering they had “recognised the scale that would be achieved” in combining the two businesses.
The company is no longer able to progress its possible merger offer after TPFG directors failed to engage in talks before the deadline of 5pm on Thursday under takeover and merger rules.